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42 DAYS LATER: WHAT WE KNOW ABOUT THE IRS SCANDAL. There have always been more questions than answers when it comes to the Internal Revenue Service’s target of conservative groups. But with the release of hundreds of pages of transcripts with key agency employees directly involved with the tax exempt division, here are five things POLITICO knows about IRS saga: 1) This isn’t Watergate; 2) It really did start in Cincinnati; 3) Washington made things worse; 4) Cincinnati screeners weren’t following consistent standards; and 5) Focus centered on conservatives, not liberal groups. Read Rachael Bade’s story the takeaways: http://politi.co/19mLRk1

BOEHNER STILL INSISTS THAT THE IRS SCANDAL DIDN’T START IN CINCINNATI. House Speaker John Boehner said he doesn’t believe the Internal Revenue Service’s targeting of conservative groups began in Cincinnati and said evidence is emerging that Washington was aware of the extra scrutiny the agency was directing at these nonprofit groups. “It's clear that this didn't start with a group of rogue agents in Cincinnati,” Boehner said on CNBC. “It's pretty clear now, more evidence [is] coming out that Washington did in fact know about it.” The potential for a Washington link has been an ongoing debate between Democrats and Republicans since the scandal erupted more than a month ago. Boehner previously said it was “inconceivable” that President Barack Obama was not informed of the agency’s action sooner. In the interview, Boehner also accused the White House of obstructing the ongoing congressional investigations.

IT’S FRIDAY, FRIDAY. The weekend is here — which Morning Tax is guessing is a welcome reprieve for the House and Senate after yesterday’s bickering. But before you run out of the office, drop me a line with tax tips. Email: lfrench@politico.com. Or tweet me at @LaurenNFrench. As always, please follow @POL­­ITICOPro.

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SENATE FINANCE RELEASES LATEST TAX REFORM OPTIONS PAPER. The Senate Finance Committee released an option paper discussing potential policy changes for non-income levies such as employment taxes, wealth transfer taxes and a variety of excise taxes. The paper — the panel’s 10th — outlines what changes could be included if lawmakers were to comprehensively reform the Tax Code. These taxes account for a serious portion of federal revenues, as close to $940 billion is generated annually from non-income taxes — just $200 billion less than individual income taxes. The option paper says lawmakers could reduce or eliminate the percent of Social Security benefits subject to an income tax or allow a deduction for Social Security taxes paid by employees. Alternatively, Congress could eliminate payroll taxes for workers aged 62-years or older.

SNEAK PEEK: NORQUIST GROUP LIGHTS UP THINK TANK CIGARETTE TAX ARGUMENT. Americans for Tax Reform will publish a counter argument to the Center on Budget and Policy Priorities report released early this week, which endorsed the tobacco tax included in President Obama’s budget. The conservative group argues that the tobacco tax would hike taxes on the middle class and would put states’ budget in flux. “Greater reliance on the tobacco taxes makes government revenues more volatile and thusly makes budgeting more difficult,” ATR argues. The anti-tax lobbying group said of the 57 state-level tobacco tax increases between 2003 and 2008, only 16 met their revenue projects. Read the full post by ATR: http://bit.ly/17qEcEn. For your reference, the CBPP post: http://bit.ly/1bTBbcc

SCHEDULED: WERFEL HEARING. The House Ways and Means Committee will hear from acting IRS Commissioner Daniel Werfel on June 27 at 10 a.m. The hearing will give Werfel a chance to update the committee on the status of the IRS review of the agency’s practice of targeting conservative groups applying for a tax exemption. “While the Committee continues a methodical investigation that includes interviewing IRS officials, reviewing internal IRS documents, and talking to those who were targeted, it is also important that we hear from IRS leadership about what immediate steps the agency has undertaken to address these actions,” committee Chairman Dave Camp said in a statement.

A NOT SO SWEET DESSERT: CADBURY’S TAX PROBLEMS. A Financial Times investigation found that the candy maker engaged in “engaged in aggressive tax avoidance schemes.” http://on.ft.com/17q8hno

— Lawmakers in Ohio have forged a deal to give taxpayers broad tax cuts over the next three years. http://bit.ly/11QuMd0

DID YOU KNOW? The Belgians used cats to deliver mail in the 19th century. Unsurprisingly, it didn’t work. (h/t @brianjohnsonmpa, a tax lobbyist at API.)

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